What You Need To Know About Construction Liens In Ontario

Ontario’s construction industry employs over 500,000 workers and [enclose?] business engaged in residential and non-residential construction as well as heavy and civil engineering projects. The interests of contractors and trades in Ontario are protected by the Construction Act. The experts at Frank Feldman Law have complied the following guide to help you navigate construction liens in Ontario.

What is a Construction Lien?

When a contractor, subcontractor or other construction professional has not been paid for worker performed or materials provided for a project, they are able to make a claim against the property. This claim is referred to as a Construction Lien. A property with a lien against it has an encumbrance on the title, this prevents a property from being sold or mortgaged until the lien cleared. If a property with a lien is sold, the proceeds from the sale must be used to pay the debt.

How to Qualify for a Lien?

The Construction Act states that to be entitled for a lien in Ontario, 3 major requirements must be fulfilled.

1.The Party must supply material or services

The supply of materials is not  limited to items permanently attached or left on the property but also may include materials used to facilitate the project – for example: supply of rental equipment without an operator

The supply of services can also include supply of rental equipment, designs, plans, drawings, or specifications as long as they increase the value of the property

2. There must be an improvement on the Property

According to the Construction Act an “improvement” can include:

  • Any addition, alteration, or repair to the land
  • Any construction, erection or installation on the land or structure on the land that is essential to its intended use, including the installation of equipment
  • Complete or partial demolition or removal of any building, structure or works on the land

3. Supplies and Services must be for an owner, contractor, or subcontractor

Carrying out construction under licenses and other contractual agreements have muddied the water when defining “owner.” According the to Construction Act, an owner is a person at whose request and upon whose credit, behalf, consent, or whose direct benefit an improvement is made to the Property.

Unsure about how to qualify for a lien or other aspects of Construction Law? Ask the experts at Frank Feldman Law Today!

Call today to learn more (647) 347-9573, ext. 1.

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